Hearts fail to pay six players their September wages

[craig 5,199]

As always.

 

At least in your own mind :devil:

[Super_Ally 0]

We signed Aluko last season outside the window.

 

Gav is right.

 

Did Aluko become a free agent before the window closed? I can't remember.

[RANGERRAB 3,299]

Hearts got this meaningless transfer embargo(instead of something much more severe) because SPL don't want to lose them in case they quit SPL to join SFL & other SPL clubs decide to follow them.

[Gazza_8 233]

The Dundee United chairman was on the panel who decided on Hearts punishment. The next day United go out and sign Rudi Skacel who had been training with Hearts.

 

Smells a bit fishy.

[ian1964 10,447]

Hearts will be called before a tax tribunal next month to answer claims that they owe Her Majesty's Revenue and Customs £1.75m in unpaid taxes.

 

The bill is in relation to arrangements made for players that were loaned to the Tynecastle side from FBK Kaunas, a Lithuanian club sponsored by Hearts owner Vladimir Romanov.

 

The club indicated the likelihood of facing the case in a brochure, which will be issued to supporters ahead of today's match with Ross County, that outlines details of the £1.79m Hearts hope to raise through a share issue.

 

It reads: "Heart of Midlothian plc. are subject to a significant ongoing dispute with [HMRC] which, if it ultimately goes against the company, could have a dramatically negative effect.

 

"Specifically, HMRC has claimed unpaid tax liabilities of circa £1.75m [excluding interest and penalties] in relation to the arrangements between the company and Kaunas in relation to certain players who were loaned to the company by Kaunas.

 

"The directors are attempting to robustly defend those claims but the burden of proof is on the company and the tax will be payable unless the company is successful."

 

http://www.heraldscotland.com/sport/football/hmrc-seeking-175m-in-tax-from-hearts.19262787

[ian1964 10,447]

By PAUL FORSYTH

Published on Sunday 28 October 2012 00:00

 

Describing the share issue as “an alarm”, Sergejus Fedotovas, the Hearts director, said that all previous efforts to raise revenue had been exhausted, and that the only other option in a difficult economic climate would be “dramatic” cuts.

 

Hearts’ financial predicament could be exacerbated by a tax demand for £1.75 million which may have major consequences for the future of the club.

 

The case, which Hearts reveal in their share issue brochure, will go to a tax tribunal next month, where the Scottish Cup winners have vowed to “robustly defend” their stance against Her Majesty’s Revenue and Customs.

 

At the centre of the dispute is the loan agreement for a number of players between Hearts and Lithuanian club Kaunas, who were then run by Vladimir Romanov, the Hearts majority shareholder since 2005. The Edinburgh club have warned that, if the tax case goes against them, it “could have a dramatically negative effect on the company”.

 

The share offer, launched on Thursday, allows fans to own up to ten per cent of the club and, although Fedotovas claimed that the intention was to invite “more participation” and “closer dialogue” with the community, he admitted that the scheme was first and foremost a cry for financial help.

 

“We are doing this as a solution to the financial challenges that are facing the club and are affecting all clubs in Scotland,” he said. “If you want to maintain a squad that is capable of playing in Europe then the budget should be according to that. It is much easier for clubs that have stadiums with a capacity of 40-50,000 people. For a number of clubs in Scotland, getting into Europe is a bonus. For us, that is the task every season, something that we must achieve.

 

“The share issue is a signal, an alarm to the people who are truly concerned about the club. We have gone through a really entertaining period and achieved on a number of occasions quite positive results in the SPL. Now, we have entered a period where economic downturn causes problems. If we want to maintain the name of the club in the capital city as one that aspires to play at the high level, then we cannot just cut, cut costs.

 

“For more than a year, we have extensively cut costs across the board, whether that was the playing squad, administration, facilities. We cannot live like this all the time.”

 

Despite selling some of their biggest assets and concentrating on home-grown talent, Hearts are still struggling to make ends meet. Fedotovas admitted that they had run out of ideas in their attempts to increase revenue, which is “short of £7 million”. It cost the club £8m just to pay the players’ wages last season, although that bill has now been cut. “We cannot go to supporters and ask them to pay twice for their season ticket because that would be a disaster. We have exhausted all the possibilities, and we still have a funding gap between the costs and the income.

 

“That’s why we are coming to the wider society, to the people who are concerned about this club. We are saying ‘we want you to step up and say if you really care’. If you think that we should be strong and continue fighting then we need to do it together.

 

“If this strategy fails, the club will be faced with a tough financial reality. The answer to that would be another dramatic cut in costs. And I don’t think anyone would be happy with a weak team and bad football results.”

 

Prospective shareholders are being asked to invest a minimum of £110 by the club’s 19 December deadline. Fedotovas said that, if fully subscribed, the 11p shares would raise around £1.7m. He said that the money, which would allow the club to “trade normally,” would fund youth development, the growing cost of maintaining Tynecastle and, further down the line, the manager’s transfer budget.

 

“If we are considering signing new players or re-signing players who are currently in the squad, we need the financial muscle to be able to do that,” said the director.

 

Due to the transfer embargo imposed on them by the SPL, Hearts were unable to bring Rudi Skacel back to Tynecastle. The Czech player, who had been training with them, signed a short-term deal with Dundee United on Friday. “That is tough news for us to hear,” said Fedotovas. “Unfortunately we weren’t able to conclude with anything. We will look to January to see if there is a possibility to sign him in January and whether we would be financially strong to do that.”

 

Vladimir Romanov, above, the club’s majority shareholder, has said that if the share issue were to be successful, he would consider passing more, maybe all, of the club into the hands of supporters. Fedotovas, who described the move as a “tasting step”, claimed that the early signs were promising. “I am happy to say that, just hours after the initial launch, we are having many calls from people who are registering their interest.”

 

What is clear is that Hearts remain at the mercy of Romanov and his Ukio Banko Investicine Grupe, which has been in control for almost eight years. As of 20 June last year, Hearts owed UBIG £22.4m, with interest at 4.5 per cent. The share document states that UBIG will not seek repayment of this amount during season 2012-13 but the position will be reassessed on 1 July 2013. “If UBIG were to demand repayment of the full amount,” states the document, “the Company [Hearts] would be insolvent and face liquidation.”

 

Against this bleak backdrop, the revelation that Hearts are also embroiled in a tax dispute is potentially devastating.

 

Hearts say they will “robustly defend” their position and contest that the situation is no different to any other loan, where parent clubs often meet wage demands. The share document states: “The directors are attempting to robustly defend those claims but the burden of proof is on the company and the tax will be payable unless the company is successful in challenging the claims. The claims will be heard by the relevant tax tribunal in November 2012.

 

“Specifically, HMRC has claimed unpaid tax liabilities of circa £1.75m (excluding interest and penalties) in relation to the arrangements between the company and Kaunas FC [and] certain players who were loaned to the company.” In season 2005-06, a number of players signed by Kaunas were immediately loaned to Hearts, including Edgaras Jankauskas, Roman Bednar, Martin Petras and Ludek Straceny.

 

http://www.scotsman.com/sport/football/spl/hearts-warn-fans-to-buy-shares-or-face-drastic-cost-cutting-measures-1-2602709

[ian1964 10,447]

Hearts hope to raise £1.79m with a share offer that will give supporters a 10% stake and Robertson has been enlisted to support the campaign.

"This is a call to arms," Robertson told BBC Scotland. "It's as simple and straightforward as that.

"We need all the Hearts fans to help, if they can. The club is in serious, serious trouble."

The Edinburgh club are currently disputing a demand from HMRC for £1.75m relating to a number of loan players that were at Hearts from 2005.

But director Sergej Fedotovas has insisted that none of the money raised by the share issue will be diverted.

And Robertson, who is the club's all-time leading goalscorer and had a brief spell as manager, is convinced the club are doing the right thing.

"I spoke to David Southern [managing director] and Sergej and I asked for three things: honesty, integrity and transparency," explained the 48-year-old.

"I asked a lot of questions about the state of the club and how they were going to go forward.

"The club is in a severe financial state.

"The wage level is coming down to a sustainable level but they need help to get to the end of the season.

"But it's not all about wages. It's about keeping the floodlights on, pitch maintenance, the plumbing and other staff salaries.

"Once we get there [the end of the season], the cuts that are in place will come in again and the club will be self-sustaining."

Hearts owner Vladimir Romanov is no longer bank rolling the club and wage delays have become common place at Tynecastle, the latest of which resulted in a player registration embargo.

"It's been a helluva seven years [since Romanov took over]," added Robertson. "Some of the players that have been here have been incredible.

"But the wages paid were unrealistic.

"Mr Romanov wanted to challenge the Old Firm and he threw a lot of money at it.

"Now he has cut his personal investment right back.

"He may have lost interest a little bit but he still wants the club to go forward in a strong position.

"This is a bit like market research. If the fans come forward and show an appetite to get involved then I'm sure the next step will be to release more shares, with the potential for others to get heavily involved in the club."

[Juancornetto 1]

First of esspeehelll clubs to go kaboom. Next up Kilmarnock, followed by Dundee Utd.

 

[foggy dewhurst 0]

the hearts are doomed

[ian1964 10,447]

By STUART BATHGATE

Published on Wednesday 7 November 2012 00:11

 

HEARTS could go out of business before next summer if their current share issue fails to raise enough cash, John Robertson believes.

 

The club’s record goalscorer, speaking at Tynecastle yesterday after being unveiled as a 2012 Share Offer ambassador, said he was confident that Hearts had a workable cost-cutting plan to be implemented at the end of the season. But to be sure of getting there, he insisted, they had to come very close to reaching the target of £1.78million in share sales.

 

Hearts’ parent company Ubig, controlled by Vladimir Romanov, has put ten per cent of its shareholding up for sale to supporters. The club is already struggling to meet its obligations to staff and, as a result, has been placed under a transfer embargo by the SPL. The position could worsen if it loses a forthcoming tax tribunal over a sum of £1.75m and Robertson is in no doubt about the gravity of the situation.

 

“This is a call to arms for Hearts fans,” he said. “Because if the club can’t get very, very close to the full subscription then they’re going to struggle to see out the end of the season.

 

“It’s as simple and straightforward as that. For a few months now, possibly going on a year, there has been a shortfall in general. Hence the late payments and the embargo.

 

“This money will see the club keep its head above water until the end of the season, and then, when the next range of cuts come in, the club will be in a self-sustainable state. And then, obviously, they are in a much better financial situation, But the club needs to get to that situation. It is very, very grave.”

 

Having priced the shares at 11p each, Hearts are offering a minimum package of 1,000 shares. Robertson pointed out that if every supporter who was at the Scottish Cup final bought that package, the offer would be significantly oversubscribed.

 

“That’s the hope, that we can get as many people on board as we can to do it. And I also think it’s a bit of market research for Vladimir Romanov – he’s looking to see if the Hearts fans have the appetite to get involved more in the club and be part of running it. I’m pretty sure if this subscription is successful he’ll look forward to meeting more people and taking it forward.

 

“Will the fans ever own the club? I don’t know. You can only deal with one thing at a time, and the first thing is to show Vladimir Romanov that the Hearts fans have the appetite to back the club. But we need to do it now and we need to do it quickly, because if the club doesn’t get to the end of the season with the share issue, then it is in serious trouble.”

 

Robertson added that he had bought shares himself and that one of his sons had asked for some for Christmas. But he urged would-be purchasers to accept that it was not the sort of investment they should expect to yield a return. “My oldest boy told me he didn’t want money for Christmas, he wanted Hearts shares instead, because he wanted to do his bit. It’s great. I was very happy when he said that, because it showed that he’s got a wee bit of appetite in it as well. Hopefully, other people can do the same. The money I’m putting in is not thousands. It’s what I can afford to lose – because this is not a financial investment, make no bones about it. This is more of an emotional donation.

 

“I was fortunate to be here for 18 seasons. The club have asked people to put a little bit back in, and this is a chance for me to do that off the pitch.

 

“I just call on all Hearts fans to get together. We stand or fall together and this is when we need it. The club need it, and unfortunately need it quickly. I’m only going on the fact of what the cub needs to keep Tynecastle running and to continue to pay the staff. We don’t know the big picture from Vladimir.

 

“If this issue is successful and gets the club to self-sustainability on the player budget, there is still the £22m debt. We are where we were when he first came in. Whether you like or dislike the way Vladimir Romanov has gone about his business, the last years here have been a bit of a rollercoaster for everybody.

 

“He has thrown money that he could afford but the club couldn’t at players. He’s funded the players and it’s been a real rollercoaster ride of emotions.

 

“Was it right? Possibly not. I think his genuine dream was he felt he could not just challenge but overtake Celtic and Rangers. We all in Scotland know it was an impossible task, but he believed in it and he threw all this money at it.

 

“I think now he’s realised it was never going to happen, so he’s backed off. And he’s now looking for people out there, and saying, OK, I’ve done my bit to get the club back towards self-sustainability, let’s see how you take it forward.”

 

http://www.scotsman.com/sport/football/spl/john-robertson-says-hearts-may-go-bust-if-shares-fail-1-2617943